ARCHIVED - Winning Bids - 1999 Beaufort Sea / Mackenzie Delta Call for Bids

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Bulletin
Volume 6, Number 3
September 1999

$183 Million Bid on Four Parcels

The 1999 Beaufort Sea/Mackenzie Delta Call for Bids closed on September 9, 1999 with over $183.2 million in work bids received for the four parcels posted as a result of the Call for Nominations. A total of four new exploration licences will be issued with an effective date of September 18, 1999. The term of the licences will be nine years divided into two periods of five and four years. The results of the Call are shown in the table below.

Duane Smith, Chairperson of the Inuvialuit Game Council in Inuvik is especially pleased with the interest expressed in the Mackenzie Delta Call for Bids, and is looking forward to future opportunities for the Inuvialuit. He looks forward to a process that has minimal impact on the environment along with cooperative development which will meet the needs of all parties involved.

This interest in the Call is heightened by the Inuvialuit Petroleum Corporation's recently completed Ikhil gas development, which succeeded in the pipeline construction and the delivery of natural gas to Inuvik. This resurgence of interest in the Delta is seen as a cornerstone for the beginning of larger projects in the Mackenzie Delta and Beaufort Sea, such as a natural gas pipeline to southern Canada.

Parcel 1 (72 474 ha) abuts significant discovery licences over oil discoveries at Ivik K-54 and J-26, and includes onshore areas of Richards Island between existing discoveries at Taglu and Mallik.

The Mallik site has been of recent interest as the location of an internationally backed scientific research program to investigate gas hydrates. A test well was drilled as an offset to the existing Mallik gas discovery which tested natural gas from a deeper conventional reservoir.

Parcel 2 (73 155 ha) includes lands bordering the Middle Channel, one of the principal distributaries of the Mackenzie River. The block envelops significant discoveries at Kumak and Yaya (P-53,A-28), and abuts Shell's Niglintgak (gas) and Unipkat (oil and gas) discoveries.

Parcel 3 (72 311 ha) Surface-owned lands of the Inuvialuit are included within the parcel along its eastern margin. The parcel surrounds the gas discovery at Titalik K-26 and adjoins significant discoveries at Reindeer (gas) and Unipkat (oil and gas).

Parcel 4 (75 511 ha) is the most southerly parcel offered. It lies in a relatively little drilled area of the southern Mackenzie Delta between the Inuvik and Aklavik land blocks (surface and subsurface mineral rights held by the Inuvialuit). The eastern margin of the parcel is about 10 kilometres from the gas development at Ikhil, now connected by pipeline to Inuvik. A fringe of Inuvialuit surface lands are included within the parcel.

For More Information on this Call please contact us by phone, (819) 997-0870, fax (819) 953-5828 or e-mail the Director: Fortierm@ainc-inac.gc.ca

The results of the Call are as follows:

Parcel 1
Work expenditure bid $ 35 550 000.00
Work deposit $ 8 887 500.00
Issuance Fee $ 2 000.00
Bidder Poco Petroleums Ltd. 50% and Burlington Resources Inc. 50%
Representative Poco Petroleums Ltd.
Parcel 2
Work expenditure bid $ 42 375 000.00
Work deposit $ 10 593 750.00
Issuance Fee $ 1 750.00
Bidder Poco Petroleums Ltd. 50% and Burlington Resources Inc. 50%
Representative Poco Petroleums Ltd.
Parcel 3
Work expenditure bid $ 51 848 860.00
Work deposit $ 12 962 215.00
Issuance Fee $ 2 000.00
Bidder Petro-Canada 60% and Anderson Resources Ltd. 40%
Representative Petro-Canada
Parcel 4
Work expenditure bid $ 53 444 900.00
Work deposit $ 13 361 225.00
Issuance Fee $ 1 500.00
Bidder Petro-Canada 60% and Anderson Resources Ltd. 40%
Representative Petro-Canada
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